Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 1 ©2001 by Prentice Hall, Inc. Chapter 5

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 2 ©2001 by Prentice Hall, Inc. Objectives Describe how organizations foster unethical business Explain how organizations can promote ethical behavior Define ethics and values Better articulate your own values

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 3 ©2001 by Prentice Hall, Inc. Objectives Distinguish between ethical and nonethical values Explain and recognize the stages of moral reasoning Describe five ethical models

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 4 ©2001 by Prentice Hall, Inc. Unethical Business Practices Ambiguous “window- dressing” policies Overemphasis on individual and firm performance Intense internal and external competition Letter of the law rather than the spirit Sole objective is profit

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 5 ©2001 by Prentice Hall, Inc. Unethical Business Practices “Let the buyer beware”Inadequate controls Indifference to customers’ best interests Failure to understand public’s ethical concerns Expediency reignsGroupthink mentality

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 6 ©2001 by Prentice Hall, Inc. Ethics Standards of conduct that indicate how one should behave based on moral duties and virtues arising from principles about right and wrong

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 7 ©2001 by Prentice Hall, Inc. Values Core beliefs or desires that guide or motivate attitudes and actions

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 8 ©2001 by Prentice Hall, Inc. Ethical Vs. Nonethical Values Trustworthiness, respect, responsibility, justice and fairness, caring, civic virtue, and citizenship Ethical—Related to what is right and proper

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 9 ©2001 by Prentice Hall, Inc. Ethical Vs. Nonethical Values Money, fame, status, happiness, being liked Nonethical—Related to things we like, desire, or find personally important

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 10 ©2001 by Prentice Hall, Inc. Kohlberg’s Three Levels of Moral Development Level One—Self-Centered (Preconventional) –Stage One: Obedience and Punishment Orientation –Stage Two: Instrumental Purpose and Exchange Level Two—Conformity (Conventional) –Stage Three: Interpersonal Accord, Conformity, Mutual Expectations –Stage Four: Social Accord and System Maintenance Level Three—Principled (Postconventional) –Stage Five: Social Contract, Individual Rights –Stage Six: Universal Ethical Principles

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 11 ©2001 by Prentice Hall, Inc. Five Ethical Approaches Environmentalism Utilitarian Approach Rights and Duties JusticeCaring

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 12 ©2001 by Prentice Hall, Inc. The Ethics Warning System Golden Rule Publicity Kid on your shoulder

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 13 ©2001 by Prentice Hall, Inc. Handling Unethical Behavior Sabotaging or refusing (quietly or vocally) to implement unethical behavior. Indicating unwillingness to support a cover-up in case wrong-doers are caught.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 14 ©2001 by Prentice Hall, Inc....Handling Unethical Behavior Secretly or publicly blowing the whistle within the organization Secretly or publicly threatening the offender or a responsible higher-level manager with blowing the whistle inside or outside the organization Secretly or publicly blowing the whistle outside the corporation.

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 15 ©2001 by Prentice Hall, Inc. Ethical Approaches in Global Companies Foreign Country Type Empire Type Interconnection Type Global Type

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 16 ©2001 by Prentice Hall, Inc. Categories of Authentic Global Norms under ISCT Illegitimate Norms: Incompatible with Hypernorms Hypernorms Consistent Norms Moral Free Space

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 17 ©2001 by Prentice Hall, Inc. ISCT Global Values Map Hypernorms—fundamental values acceptable to all cultures and organizations Consistent Norms—culturally specific values consistent with both hypernorms and other legitimate norms

Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin 18 ©2001 by Prentice Hall, Inc. ISCT Global Values Map Moral Free Space—unique cultural beliefs inconsistent with other legitimate norms of other cultures Illegitimate norms—norms incompatible with hypernorms